Exhibit 99.1
Computer Programs and Systems, Inc. Announces First Quarter 2007 Results
Company Declares Quarterly Dividend of $0.36 Per Share
MOBILE, Ala.--(BUSINESS WIRE)--April 19, 2007--Computer Programs
and Systems, Inc. (NASDAQ:CPSI):
Highlights:
-- Signed contracts for system installation at 13 new client
hospitals during first quarter; and
-- Quarterly dividend of $0.36 per share.
Computer Programs and Systems, Inc. (NASDAQ:CPSI), a leading
provider of healthcare information solutions, today announced results
for the first quarter ended March 31, 2007.
The Company also announced that its Board of Directors has
declared a regular quarterly cash dividend of $0.36 (thirty-six cents)
per share, payable on May 25, 2007, to shareholders of record as of
the close of business on May 4, 2007.
Total revenues for the first quarter ended March 31, 2007,
decreased 12.2% to $25.9 million, compared with total revenues of
$29.5 million for the prior-year period. Net income for the quarter
ended March 31, 2007, decreased 37.5% to $2.6 million, or $0.24 per
diluted share, compared with $4.1 million, or $0.38 per diluted share,
for the quarter ended March 31, 2006. Cash flow from operations for
the first quarter of 2007 was $3.4 million, compared with $3.3 million
for the prior-year period.
Commenting on the results, Boyd Douglas, chief executive officer
and president of CPSI, stated, "We continue to be optimistic about
2007 as demand for our products increases, fueled by expanded
physician acceptance of technology, the aging of our population and
growing concerns about the increasing costs of healthcare. As our
guidance for the second quarter indicates, we expect a return to more
normal revenue and earnings run rates, due in large part to the strong
number of contracts we have signed recently. We are excited about the
next quarter and the remainder of the year."
For the second quarter of 2007, the Company anticipates total
revenues of $27.5 million to $29.0 million and net income of
approximately $3.7 million to $3.9 million, or $0.34 to $0.36 per
diluted share. CPSI's 12-month backlog as of March 31, 2007, was $87.3
million, consisting of $19.6 million in non-recurring system purchases
and $67.7 million in recurring payments for support, outsourcing, ASP
and ISP contracts.
A listen-only simulcast and replay of CPSI's first quarter 2007
conference call will be available on-line at www.cpsinet.com and
www.earnings.com on April 20, 2007, beginning at 9:00 a.m. Eastern
Time.
About Computer Programs and Systems, Inc.
CPSI is a leading provider of healthcare information solutions for
community hospitals with over 600 client hospitals in 46 states.
Founded in 1979, the Company is a single-source vendor providing
comprehensive software and hardware products, complemented by complete
installation services and extensive support. Its fully integrated,
enterprise-wide system automates clinical and financial data
management in each of the primary functional areas of a hospital.
CPSI's staff of over 800 technical, healthcare and medical
professionals provides system implementation and continuing support
services as part of a comprehensive program designed to respond to
clients' information needs in a constantly changing healthcare
environment. For more information, visit www.cpsinet.com.
This press release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified generally by the use of forward-looking terminology and
words such as "expects," "anticipates," "estimates," "believes,"
"predicts," "intends," "plans," "potential," "may," "continue,"
"should," "will" and words of comparable meaning. Without limiting the
generality of the preceding statement, all statements in this press
release relating to estimated and projected earnings, margins, costs,
expenditures, cash flows, growth rates and future financial results
are forward-looking statements. We caution investors that any such
forward-looking statements are only predictions and are not guarantees
of future performance. Certain risks, uncertainties and other factors
may cause actual results to differ materially from those projected in
the forward-looking statements. Such factors may include: overall
business and economic conditions affecting the healthcare industry;
saturation of our target market and hospital consolidations; changes
in customer purchasing priorities and demand for information
technology systems; competition with companies that have greater
financial, technical and marketing resources than we have; failure to
develop new technology and products in response to market demands;
fluctuations in quarterly financial performance due to, among other
factors, timing of customer installations; failure of our products to
function properly resulting in claims for medical losses; government
regulation of our products and customers, including changes in
healthcare policy affecting Medicare reimbursement rates;
interruptions in our power supply and/or telecommunications
capabilities and other risk factors described from time to time in our
public releases and reports filed with the Securities and Exchange
Commission, including, but not limited to, our Annual Report on Form
10-K. We also caution investors that the forward-looking information
described herein represents our outlook only as of this date, and we
undertake no obligation to update or revise any forward-looking
statements to reflect events or developments after the date of this
press release.
COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Condensed Statements of Operations
(in thousands, except per share data)
Three Months Ended
March 31,
------------------
2007 2006
--------- --------
Sales revenues:
System sales $8,317 $14,519
Support and maintenance 12,540 11,170
Outsourcing 5,089 3,848
--------- --------
Total sales revenues 25,946 29,537
Cost of sales:
System sales 7,180 8,755
Support and maintenance 5,056 4,908
Outsourcing 3,057 2,223
--------- --------
Total cost of sales 15,293 15,886
--------- --------
Gross profit 10,653 13,651
Operating expenses:
Sales and marketing 2,076 2,209
General and administrative 4,892 4,982
--------- --------
Total operating expenses 6,968 7,191
--------- --------
Operating income 3,685 6,460
Interest income, net 277 257
--------- --------
Income before taxes 3,962 6,717
Provision for income taxes 1,402 2,624
--------- --------
Net income $2,560 $4,093
========= ========
Basic earnings per share $0.24 $0.38
========= ========
Diluted earnings per share $0.24 $0.38
========= ========
Weighted average shares outstanding:
Basic 10,664 10,629
Diluted 10,718 10,715
COMPUTER PROGRAMS AND SYSTEMS, INC.
Condensed Balance Sheets
(in thousands)
March 31, Dec. 31,
2007 2006
--------- --------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $7,845 $8,760
Investments 10,876 10,718
Accounts receivable, net of allowance for
doubtful accounts of $796 and $814, respectively 13,233 14,096
Financing receivables, current portion 1,885 2,177
Inventory 1,435 1,668
Deferred tax assets 1,346 1,406
Prepaid expenses 165 320
Prepaid income taxes 540 107
--------- --------
Total current assets 37,325 39,252
Financing receivables, long-term 2,435 2,397
Property and equipment 14,245 13,897
Accumulated depreciation (8,160) (7,642)
--------- --------
Total assets $45,845 $47,904
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $698 $1,204
Deferred revenue 2,738 2,275
Accrued vacation 2,134 2,053
Other accrued liabilities 1,798 3,158
--------- --------
Total current liabilities 7,368 8,690
Deferred tax liabilities 704 508
Stockholders' equity:
Common stock, par value $0.001 per share, 30,000
shares authorized, 10,757 and 10,756 shares
issued and outstanding 11 11
Additional paid-in capital 22,789 22,427
Accumulated other comprehensive income (loss) 11 (7)
Retained earnings 14,962 16,275
--------- --------
Total stockholders' equity 37,773 38,706
--------- --------
Total liabilities and stockholders' equity $45,845 $47,904
========= ========
COMPUTER PROGRAMS AND SYSTEMS, INC.
Unaudited Other Supplemental Information
(In thousands)
The following table summarizes free cash flow for the Company:
- ----------------------------------------------------------------------
Three Months Ended
March 31,
------------------
2007 2006
--------- --------
Net cash provided by operating activities $3,417 $3,292
Purchases of property and equipment (348) (386)
--------- --------
Free cash flow $3,069 $2,906
========= ========
Free cash flow is a non-GAAP financial measure which CPSI defines
as net cash provided by operating activities less purchases of
property and equipment. The most directly comparable GAAP financial
measure is net cash provided by operating activities. The Company
believes free cash flow is a useful measure of performance and uses
this measure as an indication of the financial resources of the
Company and its ability to generate cash.
CONTACT: Computer Programs and Systems, Inc.
M. Stephen Walker, 251-639-8100
Vice President-Finance and Chief Financial Officer